Steel
Heart of Dixie
Alabama’s
Economic Incentives
lead to one of the
largest developments
in state history—a
German steel
manufacturer’s $3.7
billion plant.
By Pearl Gabel
ALABAMA
FAST FACTS
■Population
(2006):
4,559,030
■Largest
Cities (2005):
Birmingham,
231,483;
Montgomery,
200,127;
Mobile, 191,544;
Huntsville,
166,313;
Tuscaloosa,
81,358
■
Targeted
Industries:
Automotive,
aviation/aerospace,
biotechnology/life
sciences,
plastics,
industrial
machinery,
technology
products
■Key
Incentives:
Alabama’s
Capital
Investment Tax
Credit, Site
Preparation
Grant Program,
Employer
Education
Credit,
Industrial
Revenue Bonds (IRB),
Alabama
Enterprise Zone
Credit
A labama’s
business climate has
attracted one of the
largest industrial
development projects
this year:
ThyssenKrupp, which
is based in Germany,
announced this May
that it will invest
$3.7 billion into
building its newest
processing plant in
Mount Vernon, AL.
The state lured the
steel company using
an incentive package
of over $811
million—the largest
in Alabama’s
history. The package
includes $461.1
million in direct
financial aid,
including land
acquisition,
workforce training,
and road
improvements, and
over $350 million
worth of tax
abatements. The
company will not
have to pay any
state income tax for
the next 30 years
unless its tax
liability exceeds
$185 million in any
year.
Mount Vernon is a
town of about 800
people situated 30
miles from Mobile.
The company plans to
hire 2,700 employees
directly and
generate over 29,000
jobs during the
initial construction
phase, which begins
in 2008. Over a
20-year period, the
facility is also
expected to yield
tens of thousands of
indirect jobs.
Alabama is Ready
to Work (source:
Alabama
Industrial
Development
Training)
The company’s
search for a U.S.
location began in
February 2006, with
67 potential sites
in 20 states. The
decision to select
Alabama was based on
operating costs and
site-specific
capital
expenditures.
The new facility
will process carbon
and stainless steel
for manufacturers
throughout North
America, including
automotive, utility,
and construction
materials, as well
as appliances,
electrical, and
precision machinery.